An investor has determined that she is willing to pay $1951.62 today for an investment that will
Question:
An investor has determined that she is willing to pay $1951.62 today for an investment that will pay $2000 in seven months from now. What market rate of return has the investor used to determine the valuation of this investment?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
If you are paying 195162 now and getting 2000 in total in 7 months that ...View the full answer
Answered By
Ikechukwu Collins
I currently mentor prospective high schools students with vested interests in machine learning techniques, as well as university undergraduates who also plan to enter the AI space and would like to gain more knowledge.
0.00
0 Reviews
10+ Question Solved
Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
Question Posted:
Students also viewed these Mathematics questions
-
1. Read the Case: What is the company worth? Grant explains to the management team that the company valuation is critical from both investors and the company. The goal is to produce a rough estimated...
-
In 2014, Dub Tarun founded a firm using $ 200,000 of his own money, $ 200,000 in senior (bank) debt, and an additional $ 100,000 in subordinated debt borrowed from a family friend. The senior debt...
-
a. Describe briefly the legal rights and privileges of common shareholders. b. 1. Write out a formula that can be used to value any stock, regardless of its dividend pattern. 2. What is a constant...
-
EarthTones, Inc., was a wholly owned subsidiary of Cutlinger Corporation. Several years ago, EarthTones acquired numerous oil leases and began exploration activities to determine their suitability...
-
Air enters an insulated diffuser operating at steady state at 100 kPa, -5oC and 250 m/s and exits with a velocity of 125 m/s. Neglecting any change in pe and thermodynamic friction, determine: (a)...
-
Cost allocations are arbitrary. Does this mean that the way you decide to allocate costs is of no consequenc to you or your organization?
-
Agreeableness, gender, and wages. Refer to the Journal of Personality and Social Psychology (Feb. 2012) study of on-the-job agreeableness and wages, Exercise 12.112 (p. 742). The researchers modeled...
-
Youre a supervisor in the treasury department of Big Corp. Recently there has been increasing concern about the firms rising interest expense. Fred Eyeshade is an analyst in your group who...
-
Q4: end of year adjusted trial balance Note: do it on Excel please Transactions 1. Dec. 1* - a new company is formed called "Lawn Darter, Inc." $10,000 cash is contributed to the start-up in exchange...
-
Billy's Hamburger Barn has a single drive-up window. Currently, there is one attendant at the window who takes the order (30-40 seconds), gathers up the food and bags it (30-120 seconds), and then...
-
A $100,000, 168-day Government of Canada Treasury bill was purchased on its date of issue to yield 2.1%. a. What price did the investor pay? b. Calculate the market value of the T-bill 85 days later...
-
In non-aqueous solvents, it is possible to react HF to create H 2 F + . Which of these statements follows from this observation? (a) HF can act like a strong acid in non-aqueous solvents (b) HF can...
-
While eating his Kelloggs Frosted Flakes one February morning, Tony noticed the following notification on his iPhone: BATTLE CREEK, Mich., February 11, 2021 /PRNewswire/Kellogg Company (NYSE: K)...
-
1) Why do you believe that in recent years PE sponsors have increasingly chosen to buy debt in their distressed LBOs? 2) What are the pros and cons of this investment strategy? 3) What issues are...
-
Paper Street Soap Company Ltd conducts a business that makes luxury soaps. It operates a factory in Oyster Bay near Sydney. The factory contains a large amount of equipment that is used in the...
-
TRANSACTION ANALYSIS: Dartmouth Ties Corporation is a merchandising company that has been in operation for two years. The company sell high - end ties for men. They purchase their inventory from...
-
Using your knowledge of types of group influence and of subcultures, explain the potential impact on consumer behavior of Methodism's tightening of its ban on gay marriage and LGBTA clergy. Write in...
-
A language L over an alphabet is co-finite, if * \ Lis empty or finite. Let COFNFA = {(N) | N is a NFA accepting a co-finite language}. Show that COF NFA is decidable.
-
Modify the program from exercise 8 to use double instead of int. Also, make a vector of doubles containing the N1 differences between adjacent values and write out that vector of differences. Data...
-
What is master production scheduling and how is it done?
-
When comparing two sample means, the t-test should be used only when the sample sizes are less than 30. Comment.
-
In a study by WebCriteria, it took an average of 2.1 minutes to locate information and buy products on the Delta Airlines website, compared to an average of 2.7 minutes on the British Airways site....
-
In Los Angeles, doctors carried out an experiment in which 105 sedentary people whose arteries were photographed were given a photograph of the inside of their arteries to carry around. Another 105...
-
The star Mira is 1.2 times the mass of the Sun and about 10,000 times more luminous than the Sun. Would Mira fit into the table above? Why or why not?
-
Which of the following was one of the most valuable benefits a company received as a sponsor of NHL games?
-
Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2023: Net...
Study smarter with the SolutionInn App